Military Pay
2025 Military Pay Charts
Military members saw a 4.5% increase in 2025, with junior enlisted members seeing an additional 10% boost in the spring to bring the raise to roughly 14.5%.
To help offset the skyrocketing costs to rent or purchase a home, the Department of Defense announced a 5.4% national average rate increase for Basic Allowance for Housing (BAH). This rate will be applied to all military branches starting on January 1, 2024.
Although 5.4% does not appear significant compared to past BAH raises, it’s worth noting that this year’s rate is following the record-breaking 2023 12.1% increase.
Note: 2025 BAH rates were announced on December 13, 2024. Check them out here.
What is BAH?
Basic Housing Allowance (BAH) is a service member benefit allotted for 95% of military housing costs. Since it only covers 95%, military members are responsible for the other 5% of their cost of living.
When calculating individual BAH amounts, factors such as grade, number of dependents, and the cost of living where the military member is stationed are taken into account.
Moreover, service members with an OCONUS (outside of the continental United States) PCS assignment may receive more money to offset the cost of living overseas. This is called Overseas Housing Allowance (OHA).
Review the 2024 BAH rates tables below to determine how much you are projected to receive this upcoming year. For a more personalized approach, you can use this BAH calculator by entering your pay grade, duty station zip code, and number of dependents.
2024 BAH Rates (5.4% increase) With Dependents
2024 BAH Rates (5.4% increase) Without Dependents
How Are BAH Rates 2024 Determined?
BAH rates are determined based on housing research and marketing analysis conducted by the Department of Defense (DoD) and then congressional approval of those proposed figures. Here is the typical workflow the DoD follows to set yearly BAH rates:
- Housing Market Analysis
- Nationwide Housing Cost Comparison
- Calculations for Individual Categories (Grades, Dependents, Zip Codes)
- Congressional Approval
Basic Housing Allowance rates increase each year because the world’s cost of living, on average, is also consistently increasing. In addition, BAH rates fluctuate depending on each military installation’s zip code since some areas have higher costs of living.
For instance, service members reporting to Joint Base Pearl Harbor- Hickam in Hawaii are expected to receive more money for BAH compared to someone reporting to Camp McCain in Mississippi. This is because Hawaii is a more expensive place to live than Mississippi.
BAH Rate Protection
Since the cost of living in any given area can change due to the economy and housing market trends, military members may receive BAH rate protection. This means that their rates are guaranteed to stay the same as long as they are stationed at that installation, even if the cost of living goes down.
BAH rate protection was established to protect military members and their families from unexpected financial hardship.
Historical BAH Rate Increases
Start Here: $0 Down Payment VA Loan Eligibility
Your military benefits make homeownership more affordable—$0 down, no PMI, and lower average rates whether you’re buying or refinancing. See if you're eligible today.
-
Jeff Ousley is an Air Force veteran and mortgage credit specialist passionate about guiding people toward homeownership.
